Exhibit 99.2
PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited, in thousands, except per share data)
GAAP | ||||||||
Three Months Ended | ||||||||
2004 | 2003 | |||||||
Net sales | $ | 86,129 | $ | 80,348 | ||||
Costs and expenses: | ||||||||
Cost of sales | 46,294 | 48,043 | ||||||
Cost of sales - license fee | — | 3,813 | ||||||
Engineering and product development | 8,586 | 8,990 | ||||||
Sales, marketing, and service | 20,475 | 22,494 | ||||||
General and administrative | 6,583 | 5,213 | ||||||
Amortization of other intangible assets | 847 | 1,490 | ||||||
Impairment of goodwill | 9,447 | 5,950 | ||||||
Restructuring costs | 3,337 | 3,320 | ||||||
Legal judgment | (3,137 | ) | — | |||||
Total costs and expenses | 92,432 | 99,313 | ||||||
Operating income (loss) | (6,303 | ) | (18,965 | ) | ||||
Interest paid on legal settlement | — | (2,050 | ) | |||||
Interest and other income, net | 418 | 327 | ||||||
Income (loss) from continuing operations before income taxes | (5,885 | ) | (20,688 | ) | ||||
Income tax expense | 1,009 | 908 | ||||||
Income (loss) from continuing operations | (6,894 | ) | (21,596 | ) | ||||
Income (loss) from discontinued operations, net of taxes | 35 | (8,259 | ) | |||||
Net income (loss) | $ | (6,859 | ) | $ | (29,855 | ) | ||
Loss per share from continuing operations: | ||||||||
Basic and Diluted | $ | (0.10 | ) | $ | (0.33 | ) | ||
Income (loss) per share from discontinued operations: | ||||||||
Basic and Diluted | $ | 0.00 | $ | (0.12 | ) | |||
Net income (loss) per share: | ||||||||
Basic and Diluted | $ | (0.10 | ) | $ | (0.45 | ) | ||
Shares used to compute net income (loss) per share: | ||||||||
Basic and Diluted | 69,517 | 66,401 | ||||||
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PINNACLE SYSTEMS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited, in thousands)
December 31, 2004 | June 30, 2004 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 78,444 | $ | 59,059 | ||||
Marketable securities | 13,631 | 10,955 | ||||||
Accounts receivable, net | 39,996 | 40,970 | ||||||
Inventories | 34,740 | 46,417 | ||||||
Prepaid expenses and other current assets | 6,431 | 8,388 | ||||||
Current assets of discontinued operations | 5,320 | 4,522 | ||||||
Total current assets | 178,562 | 170,311 | ||||||
Restricted cash | — | 16,850 | ||||||
Property and equipment, net | 14,981 | 16,314 | ||||||
Goodwill | 52,116 | 59,211 | ||||||
Other intangible assets, net | 7,193 | 8,840 | ||||||
Other assets | 7,995 | 7,628 | ||||||
Long-term assets of discontinued operations | 23,930 | 22,590 | ||||||
$ | 284,777 | $ | 301,744 | |||||
Liabilities and Shareholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 11,020 | $ | 17,912 | ||||
Accrued and other liabilities | 51,569 | 54,003 | ||||||
Deferred revenue | 12,667 | 13,818 | ||||||
Current liabilities of discontinued operations | 3,055 | 3,357 | ||||||
Total current liabilities | 78,311 | 89,090 | ||||||
Long-term liabilities of discontinued operations | 1,988 | 1,972 | ||||||
Total liabilities | 80,299 | 91,062 | ||||||
Shareholders’ equity: | ||||||||
Common stock | 379,303 | 375,550 | ||||||
Accumulated deficit | (186,277 | ) | (169,487 | ) | ||||
Accumulated other comprehensive income | 11,452 | 4,619 | ||||||
Total shareholders’ equity | 204,478 | 210,682 | ||||||
$ | 284,777 | $ | 301,744 | |||||
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